Connect with us

Gas

‎Increase gas supply boosts power generation in Nigeria

Published

on

 

As N25b gas debt remains unpaid
‎The current improvement in electricity generation, transmission and distribution in the country has been attributed to increased gas supply to various thermal power generation plants in the country. 
 
Despite the increase in power generation, transmission and distribution as a result of increased gas supply, our reporter reliably gathered that ‎the N25 billion debts owed to gas suppliers is yet to be paid. 
 
Meanwhile, the Minister of Petroleum Resources, Mrs Diezani Alison Madueke said recently in Abuja that to inspire confidence in the gas sector regarding willingness of power sector to settle it outstanding debts for gas, “the CBN will support initiatives to clear up the most recent gas related debts of the power sector.
 
“Specifically, the CBN is looking at banking sector led measures to pay off N25 billion of debts owed gas suppliers. 
 
“The Central Bank will also play key role in financial arrangements that guarantee payment for gas supply by the power sector.”
 
‎Checks with the ministry of power revealed that peak power generation currently stands at 4,068.7megawatts. 
 
Further check also revealed that the highest peak of electricity generation in the country is 4,517.6megawatts which was in December 23, 2012 despite the successful privatisation of Distribution Companies, DISCOs and Generation Companies, GENCOs in 2013. 
 
‎It was also gathered that the current increased in power generation in the country is also attributed to the successful completion of six NIPP power plants and improved gas supply to them. 
 
The completed NIPP generation power plants includes Olorunsogo-675MW, Sapele-450MW, ‎Alaoji-225MW, Omotosho-338MW, Geregu-435MW, and Ihovbor-224MW, all as gathered is working to full capacity as a result of improved gas supply to them. 
 
For the four Hydro power plants in the country, (Kainji-800MW, Jebba-540MW, Shiroro-600MW, Zamfara-100MW) It also gather ‎they might be operating at full capacity due to increased water level. 
 
‎Further checks reveals that Kainji Hydro Electric Plc comprising of Kainji and Jebba plants have total installed capacity of 1344MW but currently generate 317MW. 
 
It was also gathered that Geregu thermal generation plants currently has 414MW capacity available, Ughelli 150MW available capacity, Sapele 100MW available capacity, Afam 90MW available capacity, Omotosho 307MW available capacity, and Olorunsogo 307MW available. 
 
Egbin thermal generation plant which has 1320MW installed capacity ‎is currently restricted to 500MW. 
 
From September to December 2014, the ministry of power projected that 620MW would be delivered from hydro generation plant, 1870MW from privatised thermal power plants, 1721MW from NIPP, 407MW from IPPS, 791MW from IOCs, and 8,603MW from renewable energy. 
 
Commenting on the increased power generation, transmission and distribution in the country, a source in one of the distribution companies in Lagos, said “generation has improved that’s why distribution has improved too. 
 
“I don’t know if the N25 billion owned to gas suppliers has been paid but thermal power generation plants now received gas supply and there is enough water for hydro power generation plants to operate.”
 
Chairman of Nigeria Electricity Regulatory Commission, NERC, Dr. Sam Amadi told this writer that more gas has gone to the power plants. 
 
“‎There is no secrete to the increase power supply in the country. The thermal power generation plants now received enough gas and they are operating at different capacity. 
 
“The increase in power supply is not because gas suppliers are owned N25 billion‎, as we speak, nobody has been paid,” Amadi said. 
 
General Manager (Public Affairs) of Transmission Company of Nigeria, TCN Seun Olagunju also attributed the increased power supply in the country‎ to improved gas supply to thermal power generation plants. 
 
She also stated that some of the NIPP projects have been completed ‎adding that new investors in the power sector are committed to the power transformation agenda of the President. 
 
She therefore appeal to electricity consumer to be patient and pay their bills on time. 
 
The TCN Public Affairs General Manager also appeal to pipeline vandals to desist from the nefarious act as it affects gas supply to thermal power generation plants. 
 
Olagunju stated that TCN current transmission capacity ‎is 5,000MW imbalance and up to 7,000MW balance but the company aims to improve it transmission capacity to 6,000 MW in December. 
 
When contacted by our correspondent Engr. Mike Uzoiguwe of Egbin power plant ‎said “as long as there an increase in gas supply, there will be an increase in power supply. 
 
“We are currently generating above 4,000MW. People should be patient because there is going to be more increase in power supply. 
 
“Nigerians should be ready to pay realistic electricity tariff in as much as there is gas supply, power will continue to increase.”
 
 
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Gas

Platform Petroleum targets a billion-dollar investment

Published

on

Platform Petroleum

Announces ambitious expansion plans

 

Platform Petroleum says the company is targeting a billion-dollar investment as it announces an ambitious strategic plan to bring 3 marginal fields into production by 2025, with a target of 10,000 barrels of oil and at least 50 billion standard cubic feet of gas per day.

Speaking on the sidelines of the 2024 Offshore Technology Conference (OTC) in Houston, USA, Chief Dumo Lulu-Briggs, Chairman of Platform Petroleum said that the company has scheduled a roadshow in London this June 2024 to raise extra funding to finance their ambitious expansion plans.

“The upcoming roadshow aims to attract equity partners and prepare for future opportunities, targeting a billion-dollar investment. We are seeking partners ready to invest in Nigeria’s oil and gas potential.

Our goal is to showcase the country’s vast opportunities and its potential to international investors” Lulu-Briggs said.
Platform Petroleum’s roadshow in London will highlight the company’s efficient production, upgraded flow stations, increased capacity, and achievements in nearly zero emissions.

With about one percent gas flare currently, Platform aims for zero gas flares by the last quarter.

“Nigeria is a vast market, and Platform Petroleum is thinking big. With the government’s ambitious plans, such as the Lagos-Calabar coastal line, Platform is poised for growth; pushing itself to the next level, building on a strong foundation and following Seplat’s successful precedent”, Lulu-Briggs said.

Despite being a small company, he emphasized that Platform Petroleum has demonstrated significant success and efficiency, showcasing that smaller oil and gas entities can indeed achieve remarkable feats adding that he believes that the company deserves recognition and more assets.

“Platform Petroleum is ambitious, aspiring to become a tier-1 company akin to international oil companies (IOCs) or a tier-2 company like Seplat. Interestingly, Seplat originated from Maurel & Prom, Shebah Petroleum, and Platform Petroleum, and today stands as a major player in the industry.

This history underlines Platform’s potential for substantial growth”, Lulu-Briggs said.
Furthermore, the Platform Petroleum Chairman said that the Offshore Technology Conference (OTC) is a crucial event for promoting Nigeria’s significant market potential.

“Partnering with the Petroleum Technology Association of Nigeria (PETAN) at OTC is key to attracting investment. The current proactive government understands the necessity for economic growth, and Platform is prepared to leverage every opportunity in the oil and gas industry to contribute to this expansion”, he concluded.

Continue Reading

Breaking News

NNPC JV Unveils New Crude Oil Grade ‘Nembe’, Commences Exports With 1,900 Barrels

Published

on

Precious ADELOLA

The NNPC/Aiteo Joint venture has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.

 

The announcement of the Nembe Crude Oil Blend, produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), was made at the ongoing Argus European Crude Conference in London, on Tuesday.

 

OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration & Production Ltd, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.

 

NNPCL Boss, Engr. Mele Kyari

The Nembe Crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.

The unique selling point of the Nembe Crude Oil grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.

The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands. With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.

 

With the NNPC-Aiteo OML 29 JV back on-stream, Nigeria now boasts of an additional crude oil export of 2 Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly.

 

This remarkable achievement signals the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

 

The terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two (2) Million Barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).

 

It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation.

 

Currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, has now been resolved through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.

 

The Argus European Crude Conference 2023 in London is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets. The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another.

Continue Reading

Business

NNPCL, NCDMB, Oil Majors Agree Improved Efficiencies

Published

on

Modupe Asudo

Major players in the oil and gas sector in Nigeria led by the Nigerian National Petroleum Company Limited (NNPCL) have covenanted to optimise operations by reducing contracting cycle to not more than 180 days.

A statement issued by the company disclosed that the Memorandum of Understanding (MoU) to this effect was endorced on Monday in Abuja at the company’s head office.

Other parties to the the contract include, the Nigerian Content Development and Monitoring Board, (NCDMB) and international oil companies.

Biztellers reports that an optimised contracting cycle was expected to improve the ease of doing business, reduce cost and drive efficiency, which would eventually translate to production growth, increased revenues, and ultimately improved profitability.

In addition, the MoU was expected to contribute significantly to the double-digit economic growth rate agenda of the Federal Government and generate value for all stakeholders, including investors, companies, host communities and Nigeria.

Notable elements in the framework of the MoU, going by the statement, included a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively.

This was in contrast with the current best effort performance of 327, 333, and 185 working days respectively.

According to Group Chief Executive Officer, NNPCL, Mele Kyari, signing the agreement portends exciting times for Nigeria’s oil and gas industry, in addition to standing as a bold testimony that the company was plunging into the future of hope, productivity and success.

Kyari, represented at the occasion by Executive Vice President, Upstream, NNPCL, Oritsemeyiwa Eyesan, pointed out that with oil and gas as the bedrock of Nigeria’s economy, there was need to get the contracting process in the Industry right so as to get the economy back on track.

In his remarks, Executive Secretary, NCDMB, Simbi Wabote, described the MoU as a way forward and a critical step towards enhancing the nation’s crude oil production.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.